Learn about investing in stocks in the form of Private Equity

1. What is Private Equity?
  • Private Equity (also known as PE Fund) means private investment fund. This is a form of fund specializing in capital investment for private enterprises or some types of public companies that gradually become private companies.

  • The investment period usually ranges from 3 to 7 years. After that, the capital will be withdrawn and the profit will be collected. PE Fund has a different investment goal from other strategic investors. The objects that PE Fund targets will be companies/enterprises with great growth potential or companies that are having financial problems and need management support.

  • PE Funds make important contributions to businesses not only in terms of capital, but also in other aspects of business such as management, ideas, relationships, and experience…

2. What are the advantages of Private Equity?
  • The motivation helps businesses to strive to build, create trust and bring a positive view to investors. Thanks to PE Fund, businesses will continuously contribute and promote business development. In particular, it will help limit the departure of shareholders and quick withdrawal of capital when businesses encounter difficulties.

  • When businesses are in crisis, PE Fund will help, solve problems and strengthen to gain stable and solid positions in the market.

  • Create a new, more positive breeze for businesses to create more good ideas and develop more in the future.

  • PE Fund owns a team of highly qualified human resources with in-depth knowledge in different fields, which will help businesses become more stable.

  • PE Fund’s reputation for ensuring safety and information security is extremely high. Transactions between buyers and sellers will be absolutely confidential.

3. What are the disadvantages of Private Equity?
  • Limitations in strategic management when using PE Fund capital.

  • Assess the situation through factors such as development goals, human resources, external factors, etc. to promptly avoid risks. High profits will of course bring higher risks.